The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Elon Musk, alleging that he violated federal securities laws by delaying the disclosure of his 5% ownership in Twitter.
“The SEC claims Musk was required to disclose his stake by March 24, 2022, but he waited until April 4, 2022, a delay of 11 days.”
During this time, Musk reportedly purchased over $500 million worth of Twitter shares at lower prices, benefitting at the expense of other investors. Following his disclosure, Twitter’s stock price surged by 27%, significantly boosting the value of Musk’s investment. The SEC now seeks to impose civil penalties and force Musk to return any undeserved profits.
Musk, who acquired Twitter for $44 billion in October 2022 and renamed it X, has faced repeated legal battles with the SEC. His attorney, Alex Spiro, criticized the lawsuit, describing it as part of a “multi-year campaign of harassment” against Musk. Spiro dismissed the accusations as a minor administrative issue, stating, “Mr. Musk has done nothing wrong, and everyone sees this sham for what it is.”
The SEC’s lawsuit adds to Musk’s long history of clashes with regulators. In 2018, he settled a separate case with the SEC after tweeting about potentially taking Tesla private, paying a $20 million fine and stepping down as Tesla’s chairman.
This latest legal challenge highlights the ongoing tension between Musk and the SEC, with the outcome likely to draw significant public and investor attention. The case, filed in Washington, DC, is the latest chapter in Musk’s controversial business dealings.
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